Capital Planning & Stress Testing (DFAST)

When done properly, capital planning and stress testing can be an indispensable management tool informing senior management as they set balance sheet strategy. To move beyond a pain-inducing compliance and model risk management exercise and become part of balance sheet management best-practices, operating efficiency must be achieved. Empyrean was designed for this purpose.

Native credit modeling

Empyrean was created in response to the wave of regulation resulting from the most recent financial crisis, as such, capital planning and stress testing is a native part of Empyrean’s DNA.

Operational efficiency

Increase operational efficiency through tailor-made functionality: simulate and report at the legal entity level, build parallel account hierarchies (ie. product vs call code), model for credit losses and recoveries using a multitude of methodologies and approaches, forecast scenarios of macroeconomic variables, incorporate capital actions and calculate capital ratios.

Straightforward and defensible modeling

Straightforward, defensible, empirically-based modeling capabilities to predict credit losses and volume levels under any user-defined forecast or macro-economic conditions.